5 Keys To A Successful Business Loan Application

When you start the process of a loan application, it’s because you probably already know this: money is the only thing that can both prevent and grow a small business. It doesn’t matter if it’s expanding an operation, hiring new staff, or buying new equipment, small business owners often need to borrow money. But how does one go about strengthening their loan application and increasing their chances of being accepted? Along with a stellar credit report (on yourself and your business), keep in mind these five simple tips that can help you with your loan application:

5 Keys To Increase Your Chances Of Obtaining A Business Loan

1. Evaluate What You Need A Loan For

When you begin the process of applying for a business loan, it’s important to make sure you fully understand how much money you need, how long you need the money for, and the purpose of the loan. When you have this information up front, your lender will know that you’ve taken the time to assess your specific needs and aren’t applying for a loan just to have extra cash on hand. Learn here how to determine if a business loan is right for your business. And to keep you motivated, read here the advantages of a business loan.

We do most of the work for you. We strive to get to know your company thoroughly. When you apply for one of our business loans online, your first step will be to answer a few brief questions about your business on the application. In just a few seconds you will know if you have been pre-approved to receive a business loan. Afterward, a business loan specialist will contact you to review your options. Once you tell us more about yourself and help us understand how your business works, we’ll explain your financing options. That easy!

2. Make Your Resume Stand Out

When preparing a loan application package, be sure to include the resumes of the owners and executives of your company. Keep in mind that lenders will want to know that the people running the business have a solid understanding of the business and that they understand the day-to-day operations and financial aspects. The stronger the resume, the fewer red flags there will be for the lender. This is especially important if this is your first time applying for financing.

Again, at Philippine Small Business we make this process much easier. Once you and your loan specialist have reviewed the specific needs of your company together, he or she will already have a clear idea of ​​your company, so a resume will not be necessary. We simply drastically reduce the time and paperwork involved in a traditional bank loan application.

3. Dust And Polish Your Business Plan

Having a business plan is imperative when completing a loan application. A business plan should be created for any business, no matter its size. Business plans provide a “plan of action” for a company; Owners must have clearly outlined company goals and objectives. In addition, the plan must show what path the company is taking to achieve those goals and objectives. When applying for a business loan, make sure you’ve reviewed your original plan and modified any goals that were abandoned. Remember, a business plan is a working document; it is not stagnant, and it can change and evolve. Don’t know where to start? Learn here how to prepare a plan for your small business.

Just like with your company resume, we won’t ask for a business plan when you apply online for one of the Philippine Small Business loans. Your basic financial records are the only documents we request to start looking for the loan that best suits your needs. Let’s see this in the next point.

4. Understand What Your Profit And Loss Statements Are

One of the most important things you need to demonstrate to a lender when you apply for a loan is your ability to repay the money you’re asking for. Lenders may ask for recent income statements, bank statements, and other supporting documents. However, you must have a working profit and loss statement to show along with your loan application. To be effective, your profit and loss statement must show that your company follows a specific accounting process. If you’ve compiled a statement at the last minute to show your cash flow, lenders will know immediately. You should never guess the numbers either; Profit and loss statements must accurately reflect your actual income and expenses. accounting software to help you prepare your budgets, or you can hire the services of an accountant.

If you choose a business loan in the Philippines as your lender, you can upload your business documents online or send your financial records directly to your loan specialist – it’s quick, easy, and completely secure. Your company’s bank statements will be the only documents we will need during the application process. Then, we will carefully review your company profile to find the loan that best suits your needs. At that time, your loan specialist will make you a loan offer. All you have to do is sign the business loan agreement, and you’re good to go! You will receive money directly in your bank account in a few days.

5. Find The Right Lender

One of the many aspects of getting a loan accepted is going to the right lender. For example, if you are trying to finance a line of credit to pay for the expenses of hiring new staff, renting a new office, or day-to-day operations, you will not go to a lender that specializes in equipment financing. If your goal is to have your next bills managed, you will not go to your local bank, but rather to a management company. This matters more than you think because going to the wrong lender will waste your and their time.

Regardless of the reason you need a loan, you can always count on the professionals at Philippine Small Business. We know that every business owner has different loan requirements and some even have small flaws on their credit reports. We make sure your loan application lands in the hands of the right lender, based on your specific needs – that’s why you’ll be assigned your very own business loan specialist who will work with you and answer any questions you may have during the process. Our loan process is not only more personal than in a traditional bank: it is also simpler, takes less time, and requires less paperwork. And remember that our services do not end with loans; we offer small businesses marketing and technology tips to grow their businesses, and we help those with less-than-perfect credit get back on their feet and rebuild their credit. ¡Get in touch with us and let’s talk!